“Upon the completion of the IPO, we will have secured satisfactory financing for the Trans Mountain Expansion Project,” Kinder Morgan CEO Steve Kean said in a statement on May 25, 2017. The company’s Canadian business IPO was completed today and the shares began trading under the symbol KML. And so as long as all conditions are met, Trans Mountain moves ahead.

“We are excited to be moving forward on this tremendous project which is expected to benefit KMI and KML as well as our Trans Mountain shippers and Canada,” Kean said.

“The KML IPO is one of the largest ever in Canada and provides Canadian investors the opportunity to invest in a leading integrated midstream set of western Canadian assets.” The IPO raised gross proceeds of CAD $1.75 billion.

“Our execution planning is complete, our approvals are in hand, and we are now ready to commence construction activities this fall generating thousands of direct jobs for Canadians, including significant benefits to Indigenous communities in Alberta and British Columbia,” said Ian Anderson, president of Kinder Morgan Canada Limited.

Alberta Premier Notley chimes in loud and clear

Alberta Premier Rachel Notley expressed her strong support of the project. “Mark my words, that pipeline will be built, the decisions have been made,” the Alberta premier said during a news conference in Edmonton. “There may be debate, but at the end of the day we’re quite confident in our position,” Notley said, according to reports by CBC.

Notley said the expansion project is vital to the Alberta economy, and to the interests of the entire country. She seemed unconcerned that a new B.C. political alliance could derail the project. No province can veto the pipeline, Notley said.

CAD $7.4 billion project

The Trans Mountain Expansion Project is a C$7.4 billion project (with a remaining cash spend of C$6.2 billion as of March 31, 2017) which upon completion will provide western Canadian oil producers with an additional approximately 590,000 barrels per day (resulting in total pipeline capacity of 890,000 barrels per day) of shipping capacity and tidewater access to the western United States and global markets, Kinder Morgan said.

Proposed Trans Mountain Expansion Project Map. Source: Kinder Morgan

Kinder Morgan said the project is underpinned by 15- and 20-year shipper commitments of 707,500 barrels per day, or roughly 80 percent of the capacity on the expanded pipeline, with the other 20 percent reserved for spot volumes as required by the National Energy Board.

Kinder Morgan said construction on the project is expected to begin in September 2017 with completion expected in December 2019.

The company said that the final investment decision (FID) was contingent on securing financing. “While the political climate was not ideal, the process proceeded at this time because the Trans Mountain Expansion Project financing contingency period, as specified in shipper agreements, concludes at the end of May,” Kinder Morgan said in its press release announcing the FID for the Trans Mountain expansion.